SEHK:442

Stock Analysis Report

Executive Summary

Hifood Group Holdings Co., Limited, an investment holding company, designs, manufactures, exports, and sells fine jewelry and related products in the Americas, Mainland China, Russia, rest of Asia, rest of Europe, and internationally.

Risk Analysis

Earnings have declined by -41.93% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Does not have a meaningful market cap (HK$186M)



Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Hifood Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 442's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

442

0.3%

HK Luxury

1.7%

HK Market


1 Year Return

-52.8%

442

7.1%

HK Luxury

-2.9%

HK Market

Return vs Industry: 442 underperformed the Hong Kong Luxury industry which returned 7.1% over the past year.

Return vs Market: 442 underperformed the Hong Kong Market which returned -2.9% over the past year.


Shareholder returns

442IndustryMarket
7 Day0%0.3%1.7%
30 Day-5.3%-10.2%-4.8%
90 Day-15.6%-6.2%3.4%
1 Year-52.8%-52.8%10.7%7.1%0.7%-2.9%
3 Year-83.9%-83.9%38.2%22.1%15.3%3.6%
5 Yearn/a46.8%18.1%15.9%-3.5%

Price Volatility Vs. Market

How volatile is Hifood Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hifood Group Holdings undervalued compared to its fair value and its price relative to the market?

0.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 442's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 442's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 442 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 442 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 442's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 442 is good value based on its PB Ratio (0.6x) compared to the HK Luxury industry average (0.8x).


Next Steps

Future Growth

How is Hifood Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.0%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hifood Group Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Hifood Group Holdings performed over the past 5 years?

-41.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 442 is currently unprofitable.

Growing Profit Margin: 442 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 442 is unprofitable, and losses have increased over the past 5 years at a rate of -41.9% per year.

Accelerating Growth: Unable to compare 442's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 442 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-1.7%).


Return on Equity

High ROE: 442 has a negative Return on Equity (-10.08%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hifood Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 442's short term assets (HK$330.7M) exceed its short term liabilities (HK$44.3M).

Long Term Liabilities: 442's short term assets (HK$330.7M) exceed its long term liabilities (HK$954.0K).


Debt to Equity History and Analysis

Debt Level: 442's debt to equity ratio (3.5%) is considered satisfactory.

Reducing Debt: 442's debt to equity ratio has reduced from 138.6% to 3.5% over the past 5 years.


Balance Sheet

Inventory Level: 442 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 442's debt is covered by short term assets (assets are 30.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if 442 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 442 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Hifood Group Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 442's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 442's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 442's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 442's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 442's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.7yrs

Average management tenure


CEO

Minhao Zhao (35yo)

0.7yrs

Tenure

0

Mr. Minhao Zhao has been the Chief Executive Officer and Executive Director at Hifood Group Holdings Co., Limited since June 28, 2019. Mr. Zhao Minhao serves as the Deputy General Manager of the Investment ...


Leadership Team

NamePositionTenureCompensationOwnership
Neng Li
Chairman of the Board0.7yrsno datano data
Minhao Zhao
CEO & Executive Director0.7yrsno datano data
Chi Lai Chau
CFO & Secretary5.1yrsno datano data
Yeyong Zhao
Executive Director0.7yrsno datano data
Man Chun Li
Director of Group Subsidiaries0yrsHK$4.77mno data

0.7yrs

Average Tenure

39yo

Average Age

Experienced Management: 442's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Neng Li
Chairman of the Board0.7yrsno datano data
Minhao Zhao
CEO & Executive Director0.7yrsno datano data
Yeyong Zhao
Executive Director0.7yrsno datano data
Tit Cheung Ting
Independent Non-Executive Director5yrsHK$200.00kno data
Chi Kuen Chan
Independent Non-Executive Director5yrsHK$200.00kno data
Chun Pong Lo
Independent Non-Executive Director5yrsHK$200.00kno data

2.8yrs

Average Tenure

43yo

Average Age

Experienced Board: 442's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hifood Group Holdings Co., Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hifood Group Holdings Co., Limited
  • Ticker: 442
  • Exchange: SEHK
  • Founded: 2014
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$186.408m
  • Shares outstanding: 172.60m
  • Website: https://www.ktl.com.hk

Number of Employees


Location

  • Hifood Group Holdings Co., Limited
  • Two International Finance Centre
  • 37th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
442SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2015

Biography

Hifood Group Holdings Co., Limited, an investment holding company, designs, manufactures, exports, and sells fine jewelry and related products in the Americas, Mainland China, Russia, rest of Asia, rest of Europe, and internationally. It offers a range of fine jewelry products in karat gold, including rings, earrings, pendants, necklaces, bracelets, bangles, cufflinks, brooches, and anklets. The company offers its jewelry products to wholesalers and retailers. It is also involved in the provision of car rental, as well as management services. The company was formerly known as KTL International Holdings Group Limited and changed its name to Hifood Group Holdings Co., Limited in October 2017. Hifood Group Holdings Co., Limited was incorporated in 2014 and is headquartered in Central, Hong Kong. Hifood Group Holdings Co., Limited is a subsidiary of HNA Aviation Investment Holding Company Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 13:00
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.